Khudai is a revenge drama that revolves around Shiva (Abdul Jabbar Ansari) who lives in a village and is a devotee of Lord Shiva. He is killed by a gang lord named Rana Singh (Akhilesh Gaud). As time passes by, the atrocities of Rana Singh keep increasing while the villagers are fed up of his exploitation. A police officer, Mahesh Pandit (Abdul Jabbar Ansari), is posted in the village to put an end to the evil deeds of Rana Singh. During his encounters with Rana Singh, Mahesh Pandit realises that Rana Singh was responsible for his murder in his previous birth. It is now upto Mahesh to seek revenge.